Annual technical report on EL 23592, for the period 12 February 2007 to 11 February 2008

Abstract

Flinders Diamonds Limited (FDL) initially applied for EL 23592 in the Strangways Range area to investigate discrete regional dipolar magnetic anomalies which might be indicative of kimberlitic or lamproitic diamondiferous intrusive pipes. The Teck Cominco-BHP Billiton Alliance entered into a joint venture with FDL to evaluate the base metal potential of EL 23592 and other project tenements. The exploration target was polymetallic massive sulphide deposits. With the exception of known base metal occurrences geochemical sampling by the Alliance in 2002 did not define any base metal anomalies that warranted follow-up. In 2005 FDL sold the non-diamond rights in EL 23592 to Maximus Resources Limited (MXR). MXR was listed on the ASX on 26 October 2005. During 2006 MXR has undertaken geological reconnaissance on both a regional and prospect scale and flew an airborne electromagnetic and magnetic survey over the Johnnies Reward prospect area. Due to other priorities MXR actively sought a joint venture partner to manage exploration on EL 23592 and adjacent EL 9529, EL 22759, EL application 26440 and MCS 38. On 23 January 2008 an option/farm-in agreement was executed with Minotaur Exploration Limited (MEL). MEL immediately commenced ground electromagnetic surveys on EL 23592 which were continuing at the end of the reporting period.